INVESTOR ROADSHOW MAY/JUNE 2003
GROUP PROFILE! Largest contracting and project development group in Australia! Employs over 15,000 people throughout Australia, Asia and Pacific! Annual revenue this year expected to be around $5.7 billion! $10 billion work in hand! Strong balance sheet with total assets of $2.1 billion, net assets of $879 million and net cash of $222 million
HALF YEAR HIGHLIGHTS Dec 02 $m Jun 02 $m Dec 01 $m Total revenue 2,622 5,220 2,438 New contracts, extensions & variations 2,692 5,552 2,325 Value of work in hand 8,589 8,371 7,793 Operating profit before tax 107.8 227.3 94.7 Operating profit after tax 71.0 169.2 67.3 Dividends per ord share 17 42 16
$m 6000 TOTAL REVENUE at 30 June at 31 December 5000 4000 3000 2000 1000 93/4 94/5 95/6 96/7 97/8 98/9 99/00 00/1 01/2 02/3
$m 200 PROFIT AFTER TAX at 30 June at 31 December 150 100 50 93/4 94/5 95/6 96/7 97/8 98/9 99/00 00/1 01/2 02/3
OVERVIEW OF FINANCIAL POSITION Cash ($m) 270 588 445 Total assets ($m) 2,102 2,318 2,008 Gross debt ($m) 48 64 96 Net cash ($m) 222 524 349 Members equity ($m) 869 789 776 Return on equity (%) 8.2* 21.4 8.7 Return on assets (%) 3.4* 7.3 3.3 *Return for six month period only Dec 02 Jun 02 Dec 01
$m 9000 8000 7000 6000 5000 4000 3000 2000 1000 WORK IN HAND at 30 June at 31 December 93/4 94/5 95/6 96/7 97/8 98/9 99/00 00/1 01/2 02/3
STRATEGY DELIVERING RESULTS Geography Brands Markets/ Products Delivery Systems
GROUP STRUCTURE HOCHTIEF (50.3%) Leighton Holdings Other (49.7%) Thiess (100% owned) Leighton Asia (Northern) (100% owned) Leighton Asia (Southern) (100% owned) Leighton Contractors (100% owned) Leighton Properties (100% owned) John Holland* (70% owned)!pt Thiess Indonesia!Thiess Services!HVE!Silcar!BOS Australia!Vytel Asia!Vytel Asia! Visionstream!LSE Technology!Vytel Asia!Broad!Lucon!Infratek Networks!Quantum * Includes Transfield
AUSTRALIAN CONSTRUCTION MARKET $bn 25 Source: BIS Shrapnel, ABS data 22 19 Engineering Construction (includes work performed by public & private sectors) 16 13 Non-dwelling Buildings 10 90 92 94 96 98 00 02 04f 06f 08f
ENGINEERING AND INFRASTRUCTURE! Private sector engineering construction to grow from $12.5bn in 2001/02 $13.9bn in 2002/03 $15.2bn in 2003/04! Number of major transport projects proposed or in planning! Road sector to be worth $10bn by 2004/05
MAJOR PROJECTS! $800m Lane Cove Tunnel, NSW 2004/05! $1.8bn Mitcham-Frankston Motorway, Vic 2004/05! $400m Perth-Mandurah rail line, WA 2004/05! $800m Gateway Bridge Duplication, Qld 2005/06! $900m M4 East Motorway, NSW 2005/06! $800m F3 Freeway Connection, NSW 2006/07
MINING AND RESOURCES! Australia s largest contract miner! Positive environment leading to surge in capital spending on infrastructure! Processing of resources fuelling construction activity! Oil and gas prospects emerging
RESOURCES OPPORTUNITIES Laminaria Phase 2 (petroleum) Bayu/Undan (petroleum) North West Shelf 4th train (LNG) DARWIN Alcan (alumina) Browns (polymetallic) Key Mining Processing facility Oil & gas Dampier Nitrogen Burrup Fertilizer Eastern Ranges (iron ore) Hope Downs (iron ore) Mining area C (iron ore) Orebody 18 and 25 (iron ore) Olympic Dam (copper) MIM (copper) Rollestone (coal) Wilke Ck (coal) Sun Metals Stage II (zinc) AMC (magnesium) Comalco & Aldoga (alumina) BRISBANE Hlsmelt (pig iron) Source: ABARE and Group sources PERTH Koolyanobbing (iron ore) SAMAG (magnesium) Minerva (petroleum) Leigh Ck (coal) ADELAIDE SYDNEY CANBERRA MELBOURNE HOBART Dartbrook extension (coal) Patricia/Baleen (petroleum) Loy Yang (coal) Bream gas pipeline Tasmanian gas pipeline
MAJOR PROJECTS! $1.2bn HI smelt pig-iron plant, WA! $900m Dampier Nitrogen fertilizer facility, WA! $630m Burrup Fertilizers ammonia plant, WA! $1.5bn Alcon alumina expansion, NT! $1.5bn Phillips LNG project, NT! $3.8bn Aldoga aluminium smelter, Qld
BUILDING AND PROPERTY! Australian non-residential building market to grow from $13.1bn in 2001/02 $14.5bn in 2002/03 $15.7bn in 2003/04! Recovery centred on offices, health, education, defence and retail/hotels! Strategic partnership with James Fielding Group! Increased property activity in CBD developments, east coast
MAJOR PROPERTY DEVELOPMENTS! $600m KENS commercial office tower, NSW! $180m Noosa resort/residential development, Qld! $200m MacArthur Chambers commercial/ retail development, Qld! $130m 700 Collins St commercial office tower, Vic! $100m North Sydney commercial office tower, NSW
OTHER MARKETS - SERVICES! Lack of new capital expenditure constraining telecommunications opportunities! Some good opportunities in the operation and maintenance of transport and utilities infrastructure! Environmental market remains competitive
OVERVIEW OF ASIAN REGION! Indonesia remains largest contributor! Solid civil workload in Hong Kong! Philippines has reasonable activity levels! Pursuing other opportunities in Malaysia! Improving investment climate in Vietnam! Hopeful of further rail work in Taiwan! Thailand remains subdued
LEIGHTON ASIA (NORTHERN) PROSPECTS! Government infrastructure, Hong Kong! High speed rail project, Taiwan! Rail rehabilitation, Thailand! Resources infrastructure development and contract mining, Philippines
LEIGHTON ASIA (SOUTHERN) PROSPECTS! Power station project, Malaysia! Rail rehabilitation work, Malaysia! Hydro power project, Malaysia! LNG plant civil works, Indonesia! Civil construction, Singapore! Further pipeline work, Sri Lanka
SUMMARY! Operating performance remains strong! Board to review Nextgen at June! Work in hand at $10 billion! Diverse range of major projects in both Australia and Asia! Upswing in Australian construction, property and resources markets! Expect improved operating result for the full year
INVESTOR ROADSHOW MAY/JUNE 2003